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A Guide on How to Buy Bitcoin and Make Good Profit

Learn more about the safe methods to purchase bitcoins and store them.

With each new day, new approaches to buying Bitcoin, a decentralized digital currency, appear. You may have no idea that your preferred payment system already allows purchasing the crypto right to your wallet. If you have a PayPal account, for instance, you can start immediately.

In this post, we will cover the ways to buy cryptocurrency.

What Is a Crypto Wallet? What for You May Need One?

A crypto wallet is an application that holds private/public keys and communicates with the blockchain to make it possible to send/get digital currency. The users with such wallets can also control their funds. You cannot buy and store crypto before creating a digital wallet.

In fact, cryptocurrency does not have any physical shape. Thus, Bitcoin is not actually stored in a digital wallet. The good news is that, at least, records of transactions saved on the blockchain are available.

With the help of a cryptocurrency wallet, one is able to control personal funds, send money, receive various currencies, and more. The process of sending crypto means signing off ownership to the recipient’s wallet’s address.

What if you want to use your bitcoins just like real money? To get access to your cryptocurrency and do whatever you want, it is important that your private key matches the public address the crypto is assigned to. In this case, the funds will increase. Remember: no actual exchange of real coins exists.

How to Use Crypto Wallet: Different Types of Crypto Wallets

If you own a personal wallet filled with bitcoins, you can count on high profits over time. There are many ways to receive, sell, and keep your cryptocurrency. It might be hard to define the best one as all of them have their pros and cons. We recommend choosing wallets that guarantee the complete safety of your account.

  • PC: If you prefer working with your personal computer, you may want to download and set up a wallet on your device. You’ll be able to use the wallet just from that computer then. The safety measures are satisfying. Prevent your PC from viruses and malware to guarantee the security of your wallet.
  • Mobile: More and more people prefer accessing their crypto wallets from their smartphones and tablets. Many services have mobile-optimized apps for storing Bitcoin. You can do whatever you wish with your coins on-the-go. As the space on mobile gadgets is smaller than on computers, check whether you have enough memory for your wallet.
  • Web: Yes, you may simply have such a wallet online. One of the ways is Cloud. This way, you will be able to get your funds from any device. The keys are then saved online, which is not really good as the threats are higher than with the previous options.
  • Hardware: Usually, people purchase special hardware for mining. You can create wallets on a hardware device. As your coins are kept offline, there is nothing to worry about; it is one of the safest options. It is possible to store various cryptocurrencies. If you decide to buy or sell your Bitcoin, just use the device (turn it on), type in your pin code, choose the desired amount, and verify the action. Having a hardware wallet is both secure and relatively simple.
  • Paper: It might remind you more of securities. It is not necessarily a printout; a paper wallet can be also a type of software. The transaction happens this way: the coins are delivered from the software wallet to the public address. You can find it on the paper. Experts call this method “sweeping.” You can either be involved in such transactions by typing private keys or scanning the suggested QR code.

No matter which method you choose, you should verify your identity (except for the Bitcoin ATMs). Some companies may ask for the full package of documents for verification.

Factors to Consider While Buying Bitcoin

You should not hurry up to exchange your money for Bitcoin on the first corresponding website that you see. Online platforms all have different requirements and their pros and cons. First, we would like to pay your attention to several factors that you should consider while choosing the place to buy Bitcoin.

  • Price

The fees depend on your preferred way to get bitcoins. We discuss them in detail below. Perhaps, the worst commission is the one initiated by Bitcoin ATMs and some online brokers. As for the futures contracts, they might seem the cheapest. On the whole, fees usually fall in the interval 2-10%.

  • Upside and/or downside

The futures contract might be the cheapest, but it has cons too. For instance, you are not owning the purchased coins directly. You are dependent upon the third party. Other options provide you with full access and full control over your crypto. With contracts, you risk losing more than when being the owner of your bitcoins.

  • Safety and privacy

The primary goal is to ensure full security and confidentiality. Otherwise, it does not make sense even to start trading. Some of the crypto exchanges have been hacked several times despite their famous names. One of the examples is Binance. The company has lost thousands of dollars back in 2019. It took a while to handle the issue, and the platform has lost plenty of its users. That is why it is critical to take care of security from the very beginning. Some sites offer two-factor authentication - that is a good sign. To ensure your security, choose this type of authentication. You will then have to type in your phone number on the selected site. Then, you should install Google Authenticator that will generate unique codes for you every 30 seconds. Type in the received code manually into the corresponding fields to log in. It is not that difficult!

  • Rights

Would you like to own bitcoins directly or have just partial control over the crypto you buy? It is up to you whether to purchase Bitcoin as an asset or as a derivative. Futures contracts are a bit riskier and more confusing.

5 Time-Tested Methods to Purchase Bitcoin

It would take a while to discuss all crypto exchanges in one post. Thus, we decided to focus on services that meet all of our requirements and are rated high.

  • PayPal

PayPal is a trusted payment company from India, and it has included an opportunity to buy cryptocurrencies to its features. If you trade for less than 25 dollars, you may count on a fee of 50 cents per transaction. The company does not hide its fees, and you can always check out them on their website or in the official app. You will not have to pay anything for storing bitcoins in your PayPal wallet. It is possible to spend just one dollar on your purchases if you wish.

  • Bitcoin ATM

In some countries, they have Bitcoin ATMs. It functions just like a regular bank ATM with the only difference: you can purchase bitcoins and check your crypto balance. In addition, you can offer cryptocurrency for sale. The only thing you should have to start trading is a Bitcoin wallet registered under your name. It is possible to get coins with your credit or debit card that you insert in the ATM. Mind that the commission fees are usually high for such operations. They may even reach up to 10%. Thus, it is not the most recommended way to buy bitcoins.

  • Brokers

The main disadvantage of this method is that you will not be the only owner of the crypto you purchase. What you will get in return is the set of contracts on Bitcoin. You obtain access to 5 bitcoins for $15 per one contract. Except for the crypto, you can invest in many other securities. In this case, buyers and sellers have different positions, and sellers benefit more.

  • Eclipcoin

It is a great way to buy bitcoins! The website offers a simple calculator to find out how many bitcoins you will get for your currency. You get Bitcoin in just a couple of hours after registering and making the purchase. Eclipcoin has three levels of verification. At each stage, you may have to submit various documents, depending on the amount you wish to spend. However, it is all done for your security. The company guarantees full safety and data privacy - it does not even store your personal info in the system. This might be the exchange you need, especially if you wish to buy Bitcoin for the first time in your life.

  • Coinbase

This platform allows owning the crypto of your choice. Except for Bitcoin, you can trade other popular cryptocurrencies. You can save your coins with time-delayed withdrawals. The commission is present, but the fee is less than the Bitcoin ATM offers. It is better to pay with a debit card. The greatest pitfall is the fee system as it is rather cumbersome.

What Is the Right Time to Purchase Bitcoin?

"It is not easy to detect the time accurately. Bitcoin is a rather dynamic digital cryptocurrency, and you should not totally rely even on expert forecasts. Most often, its price boosts as a celebrity or public figure invests their money into it. The Bitcoin price chart may give you a clue, but you should also keep an eye on the crypto market news. For instance, thanks to Elon Musk, the coin will probably keep on growing in 2021."

Ethan Goldenberg from Eclipcoin, Financial expert, 10 years+ in the finance and cryptocurrency market

Though the price of Bitcoin per day is more or less the same everywhere, it is still possible to find services that charge less. For instance, they may have low commission fees. Eclipcoin is currently an exchange service with one of the most favorable rates in the industry.

Verdict

Coinbase, Kraken, Binance, Eclipcoin - those are all quick and secure platforms for purchasing Bitcoin. If you have no desire to disclose your identity, select LocalBitcoins or a Bitcoin ATM. You can buy the coins in some special banks/stores.

On the whole, the rules for purchasing bitcoins can vary among countries. You should check the conditions and ways in your specific region. Such tools as Coinmap show where you can buy bitcoins and whether any cryptocurrency ATMs are available around. The top-preferred method is still creating an online wallet.







This website is operated by Eclipcoin Technology OÜ.

Please note: purchasing or selling Cryptocurrency carry significant risk. Prices can fluctuate at any time.
Because of such fluctuations, Cryptocurrency may gain or lose value. This is your responsibility on how to handle your own assets.